📚 Federal Contracting Basics
What you actually need to bid on federal contracts
A plain-English answer to the question every small business asks: "What do I actually need before I can bid?" Sources cited at the bottom of this page — verify current thresholds at official .gov links before submitting any proposal.
5
Required to bid
4
Set-aside programs
6
Contract vehicles
14
Official sources
"I need to be on the GSA Schedule to bid."
No — you don't. The GSA Multiple Award Schedule (MAS) is one contract vehicle of many, not a prerequisite for federal sales. The vast majority of opportunities — especially set-aside contracts for small businesses — are open-market buys on SAM.gov that any qualified business with proper registrations can pursue.[1][2]
The GSA Schedule is a pre-negotiated, government-wide catalog. It typically takes 6–12 months to obtain, requires 2 years of corporate financials, past performance references, and a detailed pricing proposal. It's a long-term sales channel, not a starter requirement.[3]
The GSA Schedule is a pre-negotiated, government-wide catalog. It typically takes 6–12 months to obtain, requires 2 years of corporate financials, past performance references, and a detailed pricing proposal. It's a long-term sales channel, not a starter requirement.[3]
01 What you actually need
Five prerequisites cover the vast majority of federal opportunities. None require a GSA Schedule.
01
Unique Entity ID (UEI)
A 12-character identifier that replaced DUNS in April 2022. Required to register, bid, or receive payment.[1][4]
02
Active SAM.gov Registration
Required by FAR 4.1102 — vendors not registered in SAM cannot receive federal contract awards. Renewed annually.[2][5]
03
Matching NAICS Code(s)
Each contract is tagged with a NAICS code defining the work scope. Your business must operate in that NAICS to bid. Self-assign multiple during SAM registration.[6]
04
Set-Aside Certification
For 8(a), HUBZone, WOSB/EDWOSB, or SDVOSB-reserved contracts you need the matching certification. SBA.gov manages all four programs.[7][8][9][10]
05
CAGE Code
A 5-character supplier code. Auto-assigned when your SAM.gov registration is approved — no separate application needed.[11]
02 Federal contract vehicles
"Contract vehicle" just means the legal mechanism the government uses to buy. You don't need to know all of these — but knowing what's open to you saves time.
| Vehicle | What it is | GSA Schedule? |
|---|---|---|
| Open-Market Solicitations | Standard RFQs/RFPs posted publicly on SAM.gov. The default for most federal buys. | No |
| Set-Aside Contracts | Reserved exclusively for small businesses with specific certifications (8(a), HUBZone, WOSB, SDVOSB). | No — only the cert |
| Simplified Acquisition | Under $250K. Streamlined process with reduced paperwork. Most awards are reserved for small businesses.[12] | No |
| Micro-Purchases | Under $10K. Government Purchase Card buys. Direct, fast, minimal paperwork.[13] | No |
| GSA Schedule (MAS) | Pre-negotiated catalog with set pricing. Long-term sales channel; requires application + financials. | Yes — you'd be on it |
| GWACs | Government-Wide Acquisition Contracts (Alliant, CIO-SP4, etc.). IT-focused. Win a slot or sub under a prime. | Different vehicle |
03 Small business set-aside programs
If you qualify for any of these, you can compete for contracts reserved exclusively for that program. All four are managed by the SBA.
8(a) Business Development
9-year program for socially and economically disadvantaged small businesses. Includes sole-source awards up to $7M (services) / $4.5M (goods).[7]
9 yrProgram length
$7MSole-source max
HUBZone
Historically Underutilized Business Zones. Principal office must be in a HUBZone, and 35% of employees must reside in one.[8]
35%Employees in zone
3%Federal goal
WOSB / EDWOSB
Women-Owned Small Business. 51%+ ownership by women. EDWOSB adds the economic-disadvantage criterion. Self-certify or use a third party.[9]
51%Ownership min
5%Federal goal
SDVOSB
Service-Disabled Veteran-Owned Small Business. 51%+ ownership and management by service-disabled veterans. SBA-certified as of Jan 2023.[10]
51%Ownership min
3%Federal goal
📡 Where GovCon Capture Surfaces Opportunities
Two primary federal sources, both publicly accessible
- SAM.gov Contract Opportunities — all open federal solicitations, including set-aside, simplified acquisition, and full-and-open competitions[1]
- USAspending.gov — all awarded federal contracts (used for past-performance research and finding agencies actively buying in your NAICS)[14]
Bottom line: if you have an active SAM.gov registration, the right NAICS codes, and any required set-aside cert, you can pursue the majority of opportunities we surface. No GSA Schedule needed.
Step 01
Register on SAM.gov
Get your UEI and CAGE code, complete the 7–10 day registration. Free, required for everything else.
Start registration ↗
Step 02
Identify your NAICS codes
Determine which industry codes match your business. You can list multiple — pick all that apply to your offerings.
Look up NAICS ↗
Step 03
Browse open solicitations
See what's currently open in your NAICS codes. Filter by set-aside type, deadline, and agency to find best-fit opportunities.
Start free trial →
04 Sources & references
All claims on this page are sourced from official U.S. government materials. Thresholds, program rules, and URLs may change — always confirm at the source.
- SAM.gov — System for Award Management (sam.gov). Official federal portal for entity registration, contract opportunities, and federal hierarchy. Operated by GSA.
- FAR 4.1102 — Policy (acquisition.gov/far/4.1102). Federal Acquisition Regulation requirement that prospective contractors be registered in SAM at the time of offer.
- GSA Multiple Award Schedule (MAS) (gsa.gov/buy-through-us/purchasing-programs/gsa-multiple-award-schedule). GSA's overview of MAS, application process, and benefits.
- Unique Entity ID Transition (gsa.gov/about-us/organization/federal-acquisition-service/office-of-systems-management/integrated-award-environment-iae/iae-systems-information-kit/unique-entity-identifier-update). GSA documentation on the April 2022 transition from DUNS to UEI.
- FAR Subpart 4.11 — System for Award Management (acquisition.gov/far/subpart-4.11). Full SAM registration policy and requirements.
- NAICS — North American Industry Classification System (census.gov/naics). Official classification system; SBA establishes size standards by NAICS code.
- SBA 8(a) Business Development Program (sba.gov/federal-contracting/contracting-assistance-programs/8a-business-development-program). Program rules at 13 CFR Part 124.
- SBA HUBZone Program (sba.gov/federal-contracting/contracting-assistance-programs/hubzone-program). Program rules at 13 CFR Part 126.
- SBA WOSB Federal Contracting Program (sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal-contracting-program). Program rules at 13 CFR Part 127.
- SBA Veteran Small Business Certification (VetCert) (sba.gov/federal-contracting/contracting-assistance-programs/veteran-contracting-assistance-programs). SDVOSB certification transferred from VA to SBA effective Jan 1, 2023. Rules at 13 CFR Part 128.
- CAGE Code — Commercial and Government Entity (cage.dla.mil). Defense Logistics Agency assigns CAGE codes; auto-assigned through SAM.gov registration for U.S. entities.
- FAR Part 13 — Simplified Acquisition Procedures (acquisition.gov/far/part-13). Defines the Simplified Acquisition Threshold and procedures.
- FAR 2.101 — Definitions (acquisition.gov/far/2.101). Defines micro-purchase threshold ($10,000 for most procurements) and simplified acquisition threshold ($250,000).
- USAspending.gov (usaspending.gov). Official source for federal spending data, maintained by the Bureau of the Fiscal Service per the DATA Act of 2014.
Disclaimer: This page is general informational guidance, not legal or contracting advice. Federal regulations change. Before submitting any proposal, verify current thresholds, certification rules, and registration requirements at the official .gov sources cited above. For specific eligibility questions, consult an SBA Procurement Center Representative (PCR) or your local Procurement Technical Assistance Center (APEX Accelerator).